A Manager Is Attempting to Assess the Probability of a Recession

question 5

Multiple Choice

A manager is attempting to assess the probability of a recession ending in the next six months and its impact on expected profitability.The manager believes there is a 75 percent chance the recession will end in six months and profits will return to $400 million.However,there is a 25 percent chance the recession will not end in six months,resulting in a $5 million loss.The expected profits over the next six months are:

• A) $298.75 million.
• B) $301.25 million.
• C) $395 million.
• D) $405 million.

Record and explain the accounting treatment for asset impairments under IFRS and GAAP.

Describe the procedures for handling changes in depreciation methods and changes in estimates of asset service life.

Journalize and explain the impact of correcting errors in depreciation recording on net income and financial statements.

Understand the valuation principles and methods for property, plant, and equipment.

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Definitions:

Mindful Thinking

Involves maintaining a moment-by-moment awareness of our thoughts, feelings, bodily sensations, and surrounding environment with openness and non-judgment.

Corporate Hierarchy

Corporate hierarchy refers to the structured ranking of positions within a company, determining the flow of decision-making and authority.

Visibility

The degree to which an individual's activities, accomplishments, or status are known and acknowledged by others, particularly in a professional context.

Networking

The act of creating, maintaining, and expanding a group of acquaintances or professionals to share information, resources, and opportunities.